What is a business model?

Recently, in the process of writing a business plan, I found that different investors have different requirements for the business model, which makes entrepreneurs in a dilemma. Now let's talk about our own views, hoping to help our colleagues.

The so-called business model has different theories (such as 23469 model) in academic circles and among the people. The reason is that "entrepreneurial mentors" ignore the concept of business process (i.e. raw materials, start-up capital and partners > companies and teams > products and services > marketing strategies > Product Transportation > market objectives > cost and profit).

In fact, no business model can jump out of this business process, but different business models have different performance in this process. Therefore, we believe that the business model is the transaction structure of stakeholders in and between each link of the business process. A good business model must satisfy the stakeholders within and between each link, that is, to create total value and total increment.

Now the so-called business model demanded by investors is actually the profit model. It's just a part of the business model.

Dennis M.

Co Founder Drone/industry solutions/community

4 年

Dear Sir, I have only one example and that is to say it in your own words, if they don’t like it or understand it because of highfalutin ways then they aren’t the one for your project! Remember pitch deck maturity, it takes time to cement a solid idea, not everyone would have the rationale behind yours so just keep on doing what you do best I’m sure you will succeed!!!

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